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Sunday 10 October 2010

I Found an Inspiration

Read this link & you'll be inspired!!!


http://www.facebook.com/note.php?note_id=129674140402378&id=100000931452754

Happy Investing^^
Disclaimer ON!!!

Weekend.... Time to have fun & get a bit lesson

Today, as I promised, weekend will be additional information that you can gain from my blog. Now, we'll talk abvout the TYPE of INVESTOR/TRADER inside the market.

As most people know that, there are only two types of trader inside the market. But actually, a lot of people didn't realized that actually there are 3 types of trader based on the style of trading. What are they??

1. Short-Mid Term Trader (0-1 year)
This type of trader usually doing a trade from a day-trade (intra-day) up to a swing trade for a year. Most of this type of trader only consider technical analysis to enter the market, even some still consider a bit about fundamental analysis. This type of trader usually quite 'greedy' and a bit 'fearless' but still they are not that greedy & not that fearless. They are quite consistent with the system they use and chart seems to be their language. Usually, the profit made is not more than 75% of their capital.

2. Mid-Long Term Trader (> 1 year(s))
This type of trader usually looking for a long term prospect company before they invest their money inside the company. Fundamental looks like everything for them, without fundamental report, they won't invest on that. But once they invest they will keep checking out the fundamental report of the company to ensure that they are in a 'good boat'. Usually they have no entry & exit system, everything is based on calculation & valuation of the stock. But most of the time, they are quite fear when the price has gone up, as they believe "What goes up will eventually goes down", which is sometimes are not believed by Short-Mid Term Trader. And most of the time they invest in a defensive stocks which will not be affected so much when crisis come. Finally, the profit usually more than 75% of their capital.

3. Speculator (gambler/scalper)
This type of trader is the most dangerous one & yet this type of trader is also the fastest to get the return of their speculation. This type of trader usually using their feeling to enter the market, when it goes up, they will follow & when it goes down they will short. Mostly, this type of trader 'die' in the middle of the war as they are doing a high risk thing which is not suppose to be done, but low-medium risk is expected. We can call them as scalper as they don't expect too much on the profit margin, they just think that if the profit is enough for them, then they will liquidate immediately. Usually their profit is not more than 10% of their capital. Yet they believe that High Risk will bring high return, which they don't realize that it will also bring high losses.

Based on the method of trading , there are also 3 types of trader:
1. Fundamentalist
This type of trader usually counting a stock using financial statement to know whether their stock is cheap or expensive. Ratio mastering is a must for them, like P/E, PBV, etc. A lot of ratios are required before they buy the stock. Cheap & expensive is again determined using ratios and sometimes becoming very subjective. Some people think that 10x P/E is cheap, some think that it is expensive (5x P/E is cheap). Can be said as quite no standard when determining the cheap or expensive of an equity.

2. Technician
This type of trader usually determining the price using chart, which is believed to be a language that will expressed the price whether it is cheap or expensive. This type of trader usually don't consider about fundamental data, but some still need it to ensure their picks. Usually, they are quite discipline to the chart, when the chart says enter, they will enter & they can be said as a systematic trader. There are two types also of technician, Traditional & Modern Technician. Traditional Technician usually using lines, trend lines & chart pattern to look at the chart, modern technician usually using indicator to determine the chart. But most of the time there's no pure traditional or pure modern one, most are double checking toward each other. Usually, a technician states their trading plan very clearly.

3. Feeling trader
The most dangerous one, who do their trade using feeling as a decision. They believe that their "Feeling Analysis" is the best, yet after they lost they will say that the 'BIG' player has bully them, which actually because they have no plan in their trading. This is the worst one, don't follow this type or you'll 'die' in the market.

Decide which type & method you are NOW!!! Have a great weekend....

Happy Investing^^
Disclaimer ON!!!

Current Position

Bank BJB (BJBR.JK)
This stock is now forming a same pattern as a previous formation before it continues its increment. This can be a good consideration for us to still holding this position as long as the support is not broken.
Rating: HOLD, S/L: 1530-1520

Media Nusantara Citra (MNCN.JK)
After being quite long time forming a "pennant" pattern, now it looks like that it will go up soon. Don't reaccumulate, but hold your position, once broken 435, we can add up or enter.
Rating: Hold & Accumulate if break (Entry: 440-445), S/L: 395-390

Mitra Adiperkasa (MAPI.JK)
After being accumulated, MAPI is becoming stronger, as the last day trade we can see that now it formed a Bullish Engulfing Pattern after being in balck for 4 days, which means it is a very strong reversal, a long big candle with a volume shock.
Rating: Hold & Accumulate if break (Entry: 2475-2500), S/L: 1990-1980

Sorini Agro (SOBI.JK)
After going down some days, seems that SOBI is now well accumulated & ready to continue its bullish movement. See the almost same pattern as previous one.
Rating: HOLD, S/L: 2575-2550

Bank Nasional Indonesia (BBNI.JK)
This stock is really good, even index went down, it still can hold the position as defensive as possible. Just hold until the Right Issue if there's NO sell signal.
Rating: HOLD, S/L: 3600-3575

Intiland Development (DILD.JK)
Even our index went down around >1%, this stock still able to keep its level at around the resistiance. I'm expecting an upward movement of the stock, as a big gap is waiting at the top, yet the MFI is showing a Bullish Convergence that support my opinion to buy this, the other supporting idea is the price is expected to be more limited to decrease further.
Rating: HOLD, S/L: 445-440

Tunas Ridean (TURI.JK)
We can see some accumulation is still taken place, the stock isn't let ti be decrease, but still in progress to increase. The decrease is also become more limited as we can see that the MFI is now oversold.
Rating: HOLD, S/L: 810-800

Hotel Sahid Jaya (SHID.JK)
This stock had just made a new high again which is an all time high. We can see that this stock was very strong yesterday. As we can see that even index was going down, the stock is at the level & increase in price, which seems to be very strong & soon to break another high again next week.
Rating: Buy On Break of 1110 (Entry; 1120-1130), S/L: 960-950

Bank BTN (BBTN.JK)
This stock was distributed by some 'BIG' players, this made the stock back to the down trend channel. But still we can see that this stock has consolidated quite a long time. But I'm still optimistic to the stock that it will increase soon, as the MFI is showing a Bullish divergence.
Rating: Buy On Weakness, S/L: 1800-1790

Happy Investing^^
Disclaimer ON!!!